EUR / USD expects the employment report at a minimum in three weeks near 1.2100

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  • EUR / USD in range between 1.2100 and 1.2120, consolidating the previous decline.
  • The focus of the market is on the May US employment report.

In the preview of the US employment report, EUR / USD still looks weak, trading in a small range above 1.2100, validating recent losses. US data can have a high impact on the dollar and the market.

Downhill, eyes go to the NFP

The EUR / USD is falling for the fourth day in a row, extending the downward correction, after having encountered resistance days ago at the 1.2250 area. The bearish rally accelerated and led to Thursday’s close being the first below the 20-day moving average for the first time in a month.

The price reached the lowest level in three weeks at 1.2103 and for hours it has been operating between 1.2105 and 1.2120, With the expected market the May US labor market figures are expected to have a high impact on the market.

The market consensus is for an increase in payrolls of 650,000, although the latest figures from the ADP report make a positive surprise not so surprising. The unemployment rate is expected to go from 6.1% in April to 5.9% in May.

No highs after several weeks

After reaching highs in several weeks for eight consecutive weeks, that streak is ending in the current one. It is also the most significant fall, so far, in months of the EUR / USD in a period of five days. This could anticipate a consolidation stage ahead or extension in the correction. A weekly close above 1.2200 could do the opposite, enabling more raises.

What the EUR / USD does is not to be expected to separate from what the dollar does in general. So if the greenback resumes bearish runs, this should be strong support for the pair.

Technical levels

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